Nvidia CEO Jensen Huang has stated this week that he is 'perfectly fine' with the potential implementation of a billionaire's tax. If a proposed ballot initiative succeeds in establishing a one-time 5% wealth tax on California's billionaires, Huang could face a bill of approximately $7.75 billion (£5.76 billion), based on his estimated net worth of $155 billion (£115.34 billion).
The initiative needs to gather over 870,000 signatures to qualify for the November 2026 ballot, at which point California voters will decide whether to adopt the tax. If approved, it would impose a levy on all assets of billionaires with a net worth exceeding $1.1 billion (£818.6 million) as of the start of 2026. This would include stocks and business interests, even if individuals choose to relocate to other states later that year.
Real estate holdings would be exempt from the tax, as residents already pay property taxes, according to the state's nonpartisan Legislative Analyst's Office. Additionally, the proposal allows billionaires to spread their tax payments over five years.
When asked by Bloomberg TV if the tax concerns him, Huang responded, 'I've got to tell you, I have not even thought about it once. We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it. I'm perfectly fine with it.'
How This Wealth Tax Could Benefit Ordinary People
The proposal was introduced in November 2025 by a healthcare workers' union and is supported by lawmakers including Representative Ro Khanna and Senator Bernie Sanders. The initiative aims to direct the revenue generated from the tax towards California's healthcare system, which is facing a significant shortfall following federal cuts, as well as funding for public schools and food assistance programmes.
Supporters of the measure believe it could generate approximately $100 billion (£74.41 billion) by taxing the state's 200 billionaires.
Many Billionaires Don't Agree with Huang
Huang's support for the tax appears to stem from Nvidia's location in Santa Clara, California. 'We work in Silicon Valley because that's where the talent pool is,' he said, emphasising that Nvidia's ability to recruit top talent remains a key factor in where the company establishes its headquarters.
However, some wealthy individuals are vocally opposed. Palmer Luckey, co-founder of Anduril, has warned that the tax would force the wealthiest to 'sell huge chunks of our companies' to cover the bills. 'Now, me and my co-founders have to somehow come up with billions of dollars in cash,' Luckey wrote in a post on X late last month.
Vinod Khosla, co-founder of Sun Microsystems, has indicated that a wealth tax could drive billionaires out of California altogether. According to The New York Times, high-profile figures such as Google's Larry Page and venture capitalist Peter Thiel have been considering relocating out of the state before the end of 2025 to avoid the proposed tax.
Even Bill Ackman of Pershing Square has criticised wealth taxes, writing on X that they 'effectively represent an expropriation of private property and have many unintended and negative consequences.'
Furthermore, billionaire Mark Cuban, who has expressed pride in paying large tax bills, opposes taxing unrealised capital gains, arguing that such measures are unfair and counterproductive.
While the proposed wealth tax aims to address pressing public service needs by taxing California's wealthiest residents, it has sparked significant opposition from some of the state's billionaires. As the debate unfolds, many residents and policymakers will be watching closely to see whether the initiative gains enough support to become law — and what its real impact might be on the economy and ordinary Californians.
